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Claxon Company owns a machine with a cost of $308,440 and accumulated depreciation of $63,270 that can be sold for

$264,500, less a 6% sales commission. Alternatively, the machine can be leased by Claxon Company for three years for a total of $276,490, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Claxon Company on the machine would total $24,440 over the three years.

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